Commonwealth Bank today announced it will reduce interest rates on our Standard Variable Rate (SVR) by 0.25% per annum. Our 3 year and 5 year fixed rate products will also be reduced by 0.25% and 0.30% respectively. The new SVR will take effect from 20 February 2015.

The new SVR rate of 5.65% is the lowest since April 2009. Our fixed rates are now the lowest we have ever offered.

“As the nation’s largest lender, we are always seeking to deliver value to our 1.6 million home loan customers and today we are pleased to pass on the full benefit of the RBA’s recent interest rate reduction,” said Matt Comyn, Group Executive Retail Banking Services.

“Our new reduced standard variable rate of 5.65% is the lowest we have offered in five years, but beyond price, we are committed to ensuring our customers have the right tools, support and advice that will give them the best home buying experience.”

By reducing the standard variable home loan rate by 0.25%, homeowners will save $48 a month, based on the average mortgage of $300,000.

CommBank has reduced its variable rate on home loans by 2.16 percentage points since 1 November 2011, equating to a saving of $430 in monthly repayments and an annual saving of $5160 on a home loan of $300,000.